Wednesday, June 11, 2008

Too big to handle kah, Zubir?

Big mess at the world's biggest plantation merger Co. The blog Sime Darby Watch broke the story on Monday about the sacking of former Golden Hope top executives in the merged entity (here). The blog has a follow-up post today, in which it disputed the accounts given by the Sime Darby management and dismissed it as Sime Darby's half-truth, highly defamatory press statement.According to Sime Darby Watch, there was no domestic inquiry conducted and that the executives were told to resign or be sacked.

27 comments:

Anonymous
said...

Saudara Brew...

Congragulations... Get this show on the road!Lets see what the Deep Throats have to say...How the local scribes will digest the information...Your are also right about the tabloid view of Berita Harian...Changes can only take place when Editors play the role they are entrusted with... And not pussyfoot...It has been pointed out to me that journalists here are simply voiceless...and editors expect them to contribute towards producing a newspaper.

So, GLC's are making people acountable for losses are they?I remember not too long ago TNB Head Honcho Che Khalib Md. Nor not being fired for some RM200 coal deal. This Razidan chap perhaps did not kow tow to the powers that be at Sime and was therefore given the boot.

But to justify the sacking with losses? I've seen people loose more than that be made a Cabinet member of our government.

Puteri is long time comms head/director at Sime Darby. Met her about 7 years ago and I'm sure she's still there, perhaps holding other/bigger position. Found her to be nice, unassuming, very down to earth. Simple person easy to work with. I have a feeling she's related (sibling?) to Dato Seri Megat Najmuddin Megat Khas... Dr Megat Khas apparently was a prominent personality in Perak, a school in Ipoh is named after him. Hope this info is accurate/useful.

Dear Sime Darbians,After the sacking of two senior Sime Darby executives, all formerly of Ghope, people think that Sime did well by sacking these good people. Sime think that they are coming out of this smelling like a rose. I disagree very much. Here is the truth:

1. There was absolutely no element of fraud on the part of the GH team. No one benefited from the losses. None whatsoever. Even the trader, Badrul, who started the mess and resigned before the trading loss was discovered, did not take a single cent.

2. The losses of about RM70 million (I can’t remember the exact figure) was disclosed in the audited accounts of Golden Hope as at June 30, 2007. Go get a copy and read it for yourself.

3. Azhar, who was by then named the head of plantations of the merged group and the old Sime management, including Ahmad Zubir Murshid, were informed of the losses. I am not sure exactly when but certainly, they knew of it, i.e. the facts of the case, well before completion date of the merger. The plan to kick the 5 out were hatched then.

4. There were 2 audit investigations – one was done by the GH internal audit headed by Raja Anuar, director Internal Audit and the other, by KPMG. KPMG was appointed by Sabri Ahmad as CEO of GHope. Both were completed and the reports submitted to Sabri before the completion date.

5. There was NO DI and no due process of hearing. There was just a panel inquiry in mid May headed by a Board member. There were 2 other Board members. Sen Gupta, Ishak Hamid and Zalily Zaman Khan also sat in. An external party, KPMG, was also present. They were not allowed to bring their own witnesses and defend themselves. The 5 were issued with charge letters spelling out charges which were not even framed properly and correctly, on a Friday, and asked to present themselves before the panel the following Thursday. Monday was a public holiday. Each appeared before the panel separately. They were, based on the internal audit and KPMG’s reports accused of not exercising due diligence and following proper policies and procedures.

6. The panel’s recommendations were submitted to the audit committee and then to the Board. Word went around that Sabri and Razidan would be fired. Azmir would be demoted while Mohan and Anhar would keep their jobs.

7. Sime’s reasons for finding 4 of the 5 guilty::: Razidan is guilty because he was a board member of Jomalina and GH group CFO. Although he is an accountant and not a trader, he is accused of failing to see the losses. :: Mohan is guilty because he was the GM of Jomalina. The accountant in Jomalina, a guy by the name of Chan, who was responsible for the numbers, is long gone. He resigned soon after the losses were discovered. :: Anhar was director of oils and fats – this is why he too is guilty because Jomalina is one his outfits. :: Azmir is guilty because he headed the group trading at head office.

8. Finally, if there is one single person who should bear the brunt of Sime’s witch hunt is the ex CEO of GHope. Here is why:i. He was an ex-trader. He headed marketing/commodity trading for years. In fact he joined Golden Hope as a trader.ii. He did not inform the Board formally of the trading losses although they were disclosed in the audited accounts. The internal audit report and KPMG’s report were not given to the Board.iii. He was in full control and was hands on as far as managing the losses. He held numerous discussions with the 4 and the internal auditors and KPMG.iv. The buck stops with the man at the top.

9. My conclusion for all this mess can be read in two ways: :: One, Sime is out to get rid of all senior ex-Ghope and ex-Guthrie and they will find any excuse to remove Ghope/Guthrie people and replace them with their own. Once the witch hunt is over, then the takeover will be complete. :: Two, Sabri should have come out openly and admit his mistake and make amends by resigning. It’s too late now. Sabri’s career is over but it should not be for Razidan, Mohan, Anhar and Azmir.

the merger is good but the management is damn bad. When you merger 3 conglomerate companies, for sure they will be three management team. Each of them want to control the management. In the end, it is a mess!! PNB should bring other professional team to manage these three management group, not by appointing 1 group to control 2 groups

Dear ColleaguesMost of you would have read the news on our Enterprise Portal, the corporate website or in today's media of the decision of the Board of Directors to terminate the services of two senior employees.This decision was the result of an extensive process of investigation and deliberation, which involved KPMG Forensic, Group Corporate Assurance, the Audit Committee and the Board of Directors. In this process the persons concerned were given opportunities to be heard.Speculation and concern is natural in these circumstances. However, in the face of such findings, it was necessary for the Board to take such action. I assure you that this was not a decision taken lightly by the Board.I would ask all of you to take a positive view of the future, our business prospects continue to be robust in most of our core businesses.I personally look forward to your continued dedication, to build a strong and sustainable future for our business and to live up to the expectations of our stakeholders.

Puteri Rafidah is the daughter of Dato Dr Megat Khas, who is the first Malay doctor in Perak. Dr Megat Khas is one of the proud sons of Perak. His another offspring is corporate captain, Megat Najmuddin.

sorry, all of use forget about 1 thing, who is the co that organize the merger and propose the merger between these three companies. None other that CIMB and PNB has to pay about >RM150million for the merger. And who owned CIMB

The trading losses were incurred prior to the merger.The BOD of GH should have resolved the issue before the merger.Why on earth that the sacking only taken place after the merger? When the consultants were doing the mind-mapping to form the leadership of Sime Darby, why was this issue not taken into consideration.What a mess?

is it true the SimeDarby Watch Blog owner is an Ex Guthrie Estate manager who has already resign,if yes what is his mission to frustrate all bloggers and keep editing,i have ask him the question but he removes them,now i have to blog in yours,and if he is reading my question,please answer Mr Din,or else everyone of us presume that you bloggings are with mission and intention with bad taste to run down the organization of the New Sime Darby.